Connect with us

Finance

Stocks Appreciate as UACN Property, Oando Lead Gainers

Published

on

stock
  • Stocks Appreciate as UACN Property, Oando Lead Gainers

The Nigerian equities market closed on a positive note on Monday as UACN Property Development Company Plc, Cutix Plc and Oando Plc led the gainers’ table.

The Nigerian Stock Exchange market capitalisation appreciated to N9.025tn from N9.022tn as the All-Share Index closed at 26,231.37 basis points from 26,223.54 basis points.

A total of 228.597 million shares worth N2.579bn were traded in 3,228 deals.

The Nigerian bourse added modest points at week open after a last minute surge in Nigerian Breweries Plc stocks, which lifted the NSE ASI by three basis points above the flat line. Meanwhile, global markets traded mostly lower as investors reacted to protectionist trade remarks by new United States President, Donald Trump, during his inaugural address.

Following a rebound in Oando and Total Nigeria Plc by 3.94 per cent and 2.14 per cent, respectively, the oil/gas sector traded higher in Monday’s session, paring previous session’s loss.

Also, the consumer goods sector shrugged off losses in Honeywell Flour Mill Plc, Nestle Nigeria Plc and Cadbury Nigeria Plc by 4.84 per cent, 3.36 per cent and 1.42 per cent, respectively, to close mildly higher, owing to gains in Guinness Nigeria Plc and Nigerian Breweries by 2.24 per cent and 1.72 per cent, respectively.

While the banking sector finally settled marginally lower after mixed performances in Wema Bank Plc, Diamond Bank Plc , Zenith Bank Plc and Guaranty Trust Bank Plc, the industrial goods sector remained relatively unchanged with Cutix recording 4.4 per cent appreciation, extending its winning streak to four consecutive sessions.

Market breadth remained positive with 19 advances and 16 declines.

On what would shape the next trading session, analysts at Vetiva Capital Management Limited, in the firm’s Monday’s post said, “Despite the positive market breadth, we highlight that the market would have closed lower save for late gains in Nigerian Breweries, as most of the gainers were small cap stocks.

“That said, we believe the market could swing back to the red in the next session as a number of large cap stocks remain pressured.”

Meanwhile, the interbank call rate declined 399 basis points to 6.68 per cent amid a relatively unchanged system liquidity; and at the foreign exchange interbank market, the naira spot rate and one year forward rate remained stable at N305.50 and N378, respectively.

The Treasury bills market traded mixed with a bullish bias as moderations on the short to mid-term of the curve were countered by advances mostly on the long dated maturities. Particularly, yields on the 31 day-to-maturity, 59DTM and 199DTM bills dropped to 15.49 per cent, 12.44 per cent and 18.43 per cent, respectively, while the yields on the 325DTM and 332DTM bills rose to 21.29 per cent and 21.34 per cent, respectively.

Meanwhile, the bond market turned significantly bullish (save for the short end of the space) as yields on the benchmark bonds declined 12 basis points on the average. Notably, yields on the 15.54 per cent FGN February 2020, 14.20 per cent FGN March 2024 and 12.1493 per cent FGN July 2034 bonds moderated 17 basis points, 15 basis points and 16 basis points to settle at 16.50 per cent, 16.09 per cent and 15.97 per cent, respectively.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

FG Borrows N2.36 Trillion from Capital Market in 2020

Published

on

President Buhari

FG Borrows N2.36 Trillion from Capital Market in 2020

Mr. Oscar Onyema, the Chief Executive Officer, Nigerian Stock Exchange, said the Federal Government borrowed N2.36 trillion from the nation’s capital market in 2020.

The CEO disclosed this at the 2020 market recap/2021 outlook held on Tuesday.

He said the Federal Government issuances account for 92 percent of the total bond issued in the market in the year.

Onyema further explained that corporate organisations leveraged on low yield environment to expand and embark on debt refinancing, raising a total of N192 billion,

Capital-raising activities in the fixed income market increased significantly in 2020. The NSE’s bond market capitalisation rose by 35.52 per cent from N12.92tn in 2019 to N17.50tn,” he said.

Onyema noted that “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.

“For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year end bull run. Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index emerged the best-performing index in the world, surpassing the S&P 500 (+16.26 per cent), Dow Jones Industrial Index (+7.25 per cent) and other global and African market indexes, to post a one-year return of +50.03 per cent.

Speaking on product results for the year, the CEO said, “The Nigerian equities market got off to a strong start in 2020, returning 10.4 per cent by the eighth trading session. By October, the equities market entered a much-awaited bull run.

“Buoyed by the formal declaration of the US president-elect, unattractive fixed income yields and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03 per cent) and erase losses of -14.90 per cent recorded in 2019.

“During its remarkable year end run, the ASI gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.

“At the close of the year, the NSE’s equity market capitalisation was up by 62.42 per cent, from N12.97tn in 2019 to N21.06tn in 2020 while market turnover saw an uptick of 7.25 per cent, from N0.96tn in 2019 to N1.03Tn in 2020.

“Although Initial Public Offering activity was mute, the value of supplementary issues increased dramatically from 2019, rising by 851.37 per cent to N1.42tn, from N148.77bn.

“Also noteworthy is that for the second consecutive year, equity market transactions were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value (retail: 44.98 per cent; institutional: 55.02 per cent) while foreign portfolio investors accounted for 34.72 per cent.”

Continue Reading

Finance

Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

Published

on

Airtel Financial Results

Airtel to Announce Financial Results for Nine Months Ended December 31, 2020 on 29 January 2021

Airtel Africa, one of the leading telecommunications companies in Africa, on Wednesday announced it will report its financial statements for the nine months ended December 31, 2020 on January 29, 2021.

The telecom giant disclosed in a statement signed by Simon O’Hara, Group Company Secretary.

The statement reads “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, will announce its results for the nine months to 31 December 2020 on 29 January 2021.

“Management will host a conference call on the day of results for analysts and investors at 2:00pm GMT.

“Participants are requested to pre-register for the call by navigating to:
www.diamondpass.net/4467631

“Once registered, participants will receive a calendar invitation with the dial in details for the call.”

Continue Reading

Finance

Global Credit Rating Affirms Sovereign Trust Insurance A Rating

Published

on

insurance

Global Credit Rating Affirms Sovereign Trust Insurance A Rating

Global Credit Rating, an international rating agency based in South Africa, has affirmed Sovereign Trust Insurance Plc A rating in its latest report released for the month of December 2020.

In a statement released through the Nigerian Stock Exchange (NSE), Global Credit Rating noted “that the Company has shown a great deal of consistency in her claims paying obligations to her numerous customers spread all over the country.

The Report further stated that “the listing of the Rights Issue in 2019 helped in increasing the Shareholders’ funds of the Company by 33.8%, to N7.8b by the end of the Financial year in 2019 as against the figure of N5.8b in 2018.

“Subsequently, by the third quarter of 2020, the Shareholders’ funds had increased to N8.2b which also translated to a 31% increase in the corresponding period of 2019 with a figure of N6.3b. In the Rating Agency’s opinion, Sovereign Trust Insurance Plc is strong in liquidity with more than adequate claims coverage that compares well to industry averages.

“The capital adequacy of the Underwriting Firm is considered strong according to the rating report and this is underpinned by the sizeable capital base catering for the quantum of insurance and market risks assumed. In this regard, the ratio of Shareholders’ funds to NEP, (Net Earned Premium) improved to 189.2% in the Q3 of 2020 as against 130.9% in the corresponding quarter of 2019.

In terms of peer-to-peer performance comparison, “Sovereign Trust Insurance Plc did very well when compared with other selected insurers in terms of Capital, Total Assets, Gross Premium Income (GPI) and Net Premium Income (NPI).”

Continue Reading

Trending